BANGKOK, Aug 17 (Reuters) – Tokyo rubber futures jumped 6 percent to a one-week high on Friday on the back of measures to curb exports by the top three rubber producers and on the prospect of stronger efforts to tackle Europe’s debt crisis, dealers said
But weaker oil prices and profit-taking after a recent run up limited the gains, they said.
The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery rose 9.0 yen to settle at 221.0 yen ($2.79) per kg.
It jumped as high as 12.8 yen, or 6 percent, to an intra-day high of 224.8 yen per kg, the highest since Aug 8.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 355 yuan to finish at 21,760 yuan ($3,400) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery was last traded at 251.0 U.S. cents per kg, down 2.1 cents.
“It’s a combination of Merkel’s speech and an attempt to cut exports by major producers that helped support prices. But, the gains were still limited as players took profit,” said a Bangkok-based trader.
German Chancellor Angela Merkel voiced support for ECB President Mario Draghi’s crisis-fighting strategy on Thursday and pressured her European partners to move swiftly towards a closer integration of fiscal policies, saying time was running short.
Thailand, Indonesia and Malaysia have agreed to cut down rubber trees and trim exports by 300,000 tonnes, or about 3 percent of global production this year, in their latest attempt to shore up slumping global prices.
Dealers said weaker oil prices were also weighing on prices.
Brent crude slipped below $114 on Friday as supply worries eased on a possible release of oil reserves by the United States while Israeli comments on Iran reduced fears of a potential conflict in the Middle East that could disrupt exports.
Dealers said TOCOM prices could rise further next week as technical sentiment improved after prices finished above a major support level of 220 yen.
($1 = 79.2650 Japanese yen)
($1 = 6.3658 Chinese yuan)
(Reporting by Apornrath Phoonphongphiphat; Editing by Ed Davies)
You can find more and more rubber news at:
Rubber Markets News, Rubber Prices Reports, Rubber Market Analytics & Outlook Reports